Shares of IRCON International Ltd rose sharply in Saturday's special trade, extending their gains for the second consecutive session. The stock surged 14.80 per cent to hit a one-year high of Rs 261.35. The multibagger scrip has rallied more than 320 per cent in a year and around 50 per cent in January so far.
A majority of railway counters -- including IRCON -- have witnessed significant gains this month after it was reported that Budget allocation for the sector could hit a record high.
"With Budget around the corner, railways stocks are witnessing sharp gains. It could be on anticipating a record capex allocation for the sector," said Vishal Periwal, Sector Analyst (Infra) at IDBI Capital. Budget 2024 will be presented on February 1.
On technical setup, support for IRCON's counter could be seen at Rs 245, followed by Rs 236 and Rs 225 levels. And, a decisive move above Rs 262 is required for a further upside. An analyst recommended booking profits at current highs.
"Support will be at Rs 225 and resistance at Rs 262. A decisive close above Rs 262 level may trigger a further upside till 275. Expected trading range will be between Rs 200 and Rs 280 for a month," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.
"The stock is looking strong may hit Rs 275 level in the near term. Keep stop loss placed at Rs 245," said DRS Finvest founder Ravi Singh.
"IRCON stock price is bullish but also very overbought on daily charts with next resistance at Rs 265. Investors should book profits at current levels as a daily close below support of Rs 236 could lead to Rs 200 in the near term," said AR Ramachandran from Tips2trades.
IRCON International is an engineering and construction company with specialisation in transport infrastructure. The PSU was established in 1976. The Centre has granted 'Navratna' status to the state-owned firm.
Meanwhile, Indian equity benchmarks were open today in a special but full-fledged trading session. "January 22 has been declared as a public holiday for stock markets by the Maharashtra government owing to the consecration of the Ram temple in Ayodhya and a full-fledged trading session will be held on January 20," NSE informed late on Friday.
(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)
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